# Settlement Just Got 24 Hours Faster—Here's What Changes

May 28, 2024 marks a big shift in how stock trades actually close. The SEC is cutting settlement time from T+2 (two business days) down to T+1 (next business day)—your trades now lock in one day earlier.

**What's actually different?**

Old way: Sell stocks on Tuesday → funds arrive Thursday
New way: Sell stocks on Tuesday → funds arrive Wednesday

It sounds small, but here's where it hits you:

- If you're used to sending ACH transfers *after* your trade clears, you'll need to move that to the *day of* trading now. The money has to be sitting in your brokerage account by settlement—just initiating the transfer doesn't count.
- If you somehow still hold paper stock certificates (rare these days), you'll need to physically deliver them earlier.
- Margin call timelines shrink by one day too—T+3 instead of T+4.

**Why now?** Technology killed the excuse. When everything's digital, you don't need 48 hours to shuffle papers around. This aligns stocks with how options and Treasury securities already settle.

The rule applies to stocks, bonds, ETFs, most mutual funds—basically anything that trades on an exchange. Not much changes if your broker already holds everything electronically, but check with them anyway. The move follows a similar cut from T+3 to T+2 back in 2017.